Question

    Which of the following statements about the primary market is/are correct?

    1)The primary market is where new securities are issued and sold for the first time.

    2)Trading in the primary market is done through exchanges like the BSE and NSE in India.

    3)It is also called the new issue market.

    A 1 and 2 only Correct Answer Incorrect Answer
    B 1 and 3 only Correct Answer Incorrect Answer
    C 2 and 3 only Correct Answer Incorrect Answer
    D 1, 2 and 3 Correct Answer Incorrect Answer
    E 3 only Correct Answer Incorrect Answer

    Solution

    Statement 1 is correct as the primary market is where new securities are issued and sold for the first time. Statement 2 is incorrect as trading in the primary market.

    Practice Next